[Egypt] Zohr

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escveritas
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[Egypt] Zohr

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A Mediterranean treasure trove

Zohr
In 2019, the production capacity of this vast Egyptian field increased to 2.7 billion cubic feet of gas per day.

The Zohr field is believed to be the largest-ever gas discovery in Egypt and the Mediterranean. The integrated approach we’ve taken with this project has enabled us to bring the gas on stream just over two years from initial discovery; a record for this type of deposit.

Zohr is located within the Shorouk concession, approximately 190 km north of the city of Port Said. Eni has a 50 per cent stake in the block and is responsible for operations there. The other stakeholders are Rosneft (30 per cent), BP (10 per cent) and Mubadala Petroleum (10 per cent).

In August 2019, production from the field reached more than 2.7 billion cubic feet of gas per day (bcf/d), roughly five months ahead of the development plan. This result was achieved thanks to the completion of all eight land-based treatment units and all the systems for treating and removing sulphur – proceeds from the sale of which, as fertiliser, are used to fund corporate responsibility initiatives. The rapid success can also be attributed to the commissioning of a further three wells and a second 30-inch gas pipeline, which extends 216 km and connects the underwater production installations to the land-based treatment plant. Production comes from the Zohr field which in 2019 achieved the production of 145 kboe/d net to Eni and accounted for 41% of Eni’s production in the Country.

Technologies

We have been able to integrate the exploration and development phases by combining advanced technologies – such as 3D models to study the field – with careful engineering and logistics planning. By performing pre-development analyses during the exploration phase, we can gather information that enables us to improve the project engineering and reduce the time taken to arrive at the final investment decision (FID). Our design-to-cost model involves subdividing projects into phases that reduce risk where the subsurface is concerned. Following this approach with Zohr, we reached the FID in February 2016 and the first gas came on stream at the end of 2017, just over two years from the initial discovery.
escveritas
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Re: [Egypt] Zohr

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Eni and BP complete the sale of 10% of Shorouk, offshore Egypt

Cairo (Egypt), 13 February 2017 – Eni’s CEO, Claudio Descalzi, Bob Dudley, CEO of BP, and the Egyptian Minister of Petroleum, Tarek El Molla signed a deed completing the sale to BP of a 10% stake in the Shorouk concession, offshore Egypt. The signing took place in Cairo in the presence of the Prime Minister Sherif Ismail. Eni and BP first agreed on the sale of the concession stake, where the super-giant Zohr gas field is located, in November 2016. Eni, through its subsidiary IEOC, now holds a 90% stake in the license, while Rosneft has agreed to acquire a 30% stake, subject to the Egyptian governmental approval.

Additionally, Claudio Descalzi has been received by President Abdel Fattah el-Sisi. The meeting follows the one held in January during which Eni’s CEO confirmed that the development of Zohr is progressing very quickly, having been fast tracked, and that the start of production is confirmed for 2017, just two year after the discovery was made.

Zohr was discovered by Eni in August of 2015 and, with a total potential of 850 billion cubic meters of gas in place, is the largest natural gas field ever discovered in the Mediterranean. The project confirms Eni’s sector leading ability in exploration and fast development of the discoveries.

In Egypt, Eni and BP, are also partners in the Nooros field, discovered in July 2015 in the Nile Delta, that is already producing about 25 MMScm/d only 15 months after the startup of the field, as well as in Baltim SW field, discovered in June 2016. The start-up of Baltim SW is expected in 2019.

Eni has been present in Egypt since 1954, operating through its subsidiary IEOC. The company is the main producer in the country with an equity production of approximately 230,000 barrels of oil equivalent per day.
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Re: [Egypt] Zohr

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Eni sells a 30% stake in the Shorouk concession, offshore Egypt, to Rosneft

San Donato Milanese (Milan), 12 December 2016 – Eni has agreed to sell to Rosneft a 30% participating interest in the Shourouk Concession, offshore Egypt, where the supergiant gas field Zohr is located. Eni, through its subsidiary IEOC, currently holds a 90% stake in the block following the recent dilution of 10% to BP which completion is ongoing.

The agreed conditions include a consideration of 1,125 million US dollars and the pro quota reimbursement of past expenditures, which amount so far at approximately 450 million US dollars. In addition, Rosneft has an option to buy a further 5% stake under the same terms.


This agreement further confirms the success of Eni’s “dual exploration model” which, in parallel with an accelerated development of the hydrocarbons reserves, aims at early monetization of the value through the dilution of the high participating interest owned in huge exploration discoveries. With this transaction, in the last four years the model has generated a total cash of approximately 6.3 billion US dollars.


The completion of the transaction is subject to the fulfillment of certain standard conditions, including all necessary authorizations from Egypt’s authorities.

The Zohr field, located in the Shorouk Concession, was discovered by Eni in August 2015 and is the largest natural gas field ever found in the Mediterranean, with a total potential of 850 billion cubic meters of gas in place. On February 2015, the authorization process for the development of field was completed, while the first gas is expected by the end of 2017.

Eni has been present in Egypt since 1954 where it operates through IEOC Production BV. The equity production was about 200,000 barrels of oil equivalent per day in 2015.
escveritas
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Re: [Egypt] Zohr

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Eni completes sale of a 30% stake in the Shorouk concession, offshore Egypt, to Rosneft

San Donato Milanese (Milan), 9 October 2017 – Eni has finalized the sale of a 30% stake in the Shorouk concession, where the super-giant Zohr gas field is located, to Rosneft.

The terms of the sale, agreed in December 2016, include a payment of 1,125 million US dollars and a pro quota reimbursement of investments already made.

Eni, through its subsidiary IEOC, now holds a 60% stake in the concession, Rosneft, through its subsidiary Upstream Projects PTE Ltd, 30% and BP 10%.

This transaction confirms once again the validity of Eni’s "dual exploration" strategy, which consists of selling minority stakes in its exploration successes, while maintaining control and operatorship, in parallel to the fast track development of discovered reserves. Through this strategy, which allows accelerated monetization of the exploration successes, Eni has been able to cash in more than $9 billion in the last four years.

Zohr, which is considered the largest natural gas field ever found in the Mediterranean, was discovered by Eni in August 2015. Its start-up is scheduled by the end of 2017, just over two years after its discovery, setting a record for the industry.

Eni has been present in Egypt since 1954, where it operates through its subsidiary IEOC. The company is the country's leading producer with equity of about 230,000 barrels of oil equivalent per day.
escveritas
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Re: [Egypt] Zohr

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Eni begins producing from Zohr, the largest ever discovery of gas in the Mediterranean Sea

The field, with potential resources in excess of 30 Tcf of gas in place, started-up in less than two and a half years from the discovery: a record time for a field of this size in deep waters

San Donato Milanese (Milan), 20 December 2017 – Eni has produced its first gas from the supergiant Zohr field in a record time for this type of field of less than two and a half years. The discovery, which is located in the Shorouk Block, offshore Egypt approximately 190 km north of Port Said, has a potential in excess of 30 Tcf of gas in place (about 5.5 billion barrels of oil equivalent).

Zohr, discovered in August 2015, obtained the investment authorization after just six months in February 2016. It is the largest gas discovery ever made in Egypt and in the Mediterranean Sea, and will be able to satisfy a part of Egypt’s natural gas demand for decades to come.

Zohr is one of Eni’s seven record-breaking projects, which have involved rapid development and production, and is testament to the success of Eni’s Dual Exploration Model, adopted by 2013. The approach is based on a simple principle: while the reserves of hydrocarbons grow through the exploration successes, Eni can benefit from early monetization thanks to the sale of minority stakes, all while maintaining operatorship of the asset. By parallelizing exploration, appraisal and development phases, the time-to-market is quicker, equity development cost are lowered, and Eni achieves an accelerated cash flow. This winning combination allowed Eni to generate $9bn from its exploration activities between 2014 and 2017.

Eni’s CEO, Claudio Descalzi, commented: «Today is a historic day for us. It further confirms the capability of Eni’s women and men to turn challenging opportunities into unprecedented achievements. The start-up of Zohr is the direct result of our unique know-how, our ability to innovate in technology and of our tenacity in pursuing even the most challenging goals, of which we are very proud. This project has been possible exploiting to the maximum level the competences, the skills as well as the human and infrastructural capabilities that this Country offers in terms of local content. It will completely transform Egypt’s energy landscape, allowing it to become self-sufficient and to turn from an importer of natural gas into a future exporter. I would like to thank the Egyptian Authorities and all our Partners in this incredible project for their all-important contributions and the whole Egyptian petroleum sector which provided full support to achieve Zohr project in a record time».

Eni holds a 60% stake in Shorouk Block, Rosneft 30% and BP 10%. The company is co-Operator of the project through Petrobel, jointly held by Eni and the state corporation Egyptian General Petroleum Corporation (EGPC), on behalf of Petroshorouk, jointly held by Eni and the state company Egyptian Natural Gas holding Company (EGAS).

Eni has been present in Egypt since 1954, where it operates through its subsidiary IEOC Production BV. The company is the Country’s main producer with an equity production of approximately 230,000 barrels of oil equivalent per day.
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Re: [Egypt] Zohr

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Zohr Ramp-up: Eni reaches 2 bcfd production target

Zohr is now producing 2 bcfd only a few months after the first gas in December 2017 and 1 year before the schedule of the PoD.
San Donato Milanese (Milan), 8th September, 2018 – Eni announces that Zohr field is now producing 2 bcfd, equivalent to approximately 365,000 boed. This outstanding result has been achieved only a few months after the first gas in December 2017 and one year before the schedule of the Plan of Development (PoD).

This level of production was achieved thanks to the start-up of the fifth production unit (T4), backed by the 8 gas producers and a new 30” x 218 km sealine, commissioned last month and confirms the program pursued by Eni, its partner, Egyptian Natural Gas Holding Company (EGAS) and their joint venture company Petrobel aimed to reach a plateau in excess of 2.7 bcfd in 2019.

The latest achievement reinforces the exceptional development path of the Zohr project, one of Eni’s seven record-breaking projects, which is playing a fundamental role in supporting Egypt’s independence from LNG imports.

The Zohr field, the largest gas discovery ever made in Egypt and in the Mediterranean Sea with more than 30 tcf of gas in place, is located within the offshore Shorouk Block (some 190 km north of Port Said). In the Shorouk Block, Eni holds a 50% stake, Rosneft 30%, BP 10% and Mubadala Petroleum 10% of the Contractor’s Share (where Eni, Rosneft, BP and Mubadala Petroleum are collectivity the Contractor).

The project is executed by Petrobel, the Operating Company jointly held by Eni and the state corporation Egyptian General Petroleum Corporation (EGPC), on behalf of Petroshorouk, jointly held by Contractor (Eni and its partners) and the state company Egyptian Natural Gas holding Company (EGAS).

Eni has been present in Egypt since 1954, where it operates through its subsidiary IEOC. The company is the Country's leading producer with an equity of some 340,000 barrels of oil equivalent per day.
escveritas
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Re: [Egypt] Zohr

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Eni: Zohr gas production reaches 2.7 bcfd

Zohr field gas production reaches more than 2.7 bcfd about 5 months ahead of the PoD. The commissioning of a 2nd 30” pipeline, in conjunction with the completion and optimization of the plant treatment capacity, paves the way to increase, by the year end, the field potential production rate up to 3.2 bcfd.

The start-up of the 2nd 30” pipeline has enabled the production to reach 2.7 bcfd and paves the way for a potential increase to plateau rate of 3.2 bcfd by the year end

San Donato Milanese (Milan), 21 August 2019 - Eni announces that the production from Zohr field has now reached more than 2.7 billion cubic feet per day (bcfd), about 5 months ahead of the Plan of Development (PoD).

This remarkable result has been achieved following the completion of all eight onshore treatment production units – the last one commissioned in April 2019 – and all Sulphur production units in August, the production start-up of two wells in the southern culmination of the field (in addition to the ten wells already drilled in the northern culmination) as well as the start-up on August 18th 2019 of the second 216 km long 30” pipeline connecting the offshore subsea production facilities to the onshore treatment plant.

The new pipeline, in conjunction with the completion and optimization of the plant treatment capacity, paves the way to increase, by the year end, the field potential production rate up to 3.2 bcfd against the POD’s plateau rate of 2.7 bcfd.

The Zohr field, the largest gas discovery ever made in Egypt and in the Mediterranean Sea, is located within the offshore Shorouk Block. In the Block, Eni holds a 50% stake, Rosneft 30%, BP 10% and Mubadala Petroleum 10% of the Contractor’s Share.

The project is executed by Petrobel, the Operating Company jointly held by Eni and the state corporation Egyptian General Petroleum Corporation (EGPC), on behalf of Petroshorouk, jointly held by Contractor (Eni and its partners) and the state company Egyptian Natural Gas holding Company (EGAS).

Eni has been present in Egypt since 1954, where it is the main producer with approximately 360,000 barrels of oil equivalent per day equity. Such production is expected to further grow within the year, thanks to the ramp-up of Zohr and the start-up of Baltim South West fields.
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